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National Insurance Agency Critical Illness

Ken SmithDirector of Critical Illness & Disability

800/276-7619 ext 4409ksmith@assurity.com

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Attitude

The Shoe Salesman

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What is Critical Illness Insurance?

It Pays a Lump Sum Benefit on the

Diagnosis of a Covered Condition

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Purpose

Critical Illness Insurance was created to Remove Financial Stress so that the Person can Focus on Recovery

It’s About Survival

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OpportunityWe believe Critical Illness is the best opportunity our generation will have in the insurance business

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Opportunity Meets A Need Not Met by any Other Product Makes a Difference in People’s Lives No One Owns It - Everyone is a Prospect Sets You Apart

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History of Critical Illness

Developed by Dr Marius Barnard Originated in South Africa in 1983 Introduced in:

• England 1987• Australia 1990• Japan 1993• Canada 1994• US 1999

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Successful In Every Country

Takes 5-7 years before sales start to develop

Sales Ideas are transferable 20 years of Sales Ideas

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CRITICAL ILLNESSASG STRATEGY

Quality Product Training – 2 hr. CE Sales Tools and Sales Support

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Claims ExperienceUK Claims Paid

Age Male Female

Under 40 33% 45%

41-50 35% 35%

51-60 23% 14%

Over 61 9% 6%

Average Age of Claims Paid: 43

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Due to medical advancements:

People are living longer

More critical illnesses are being diagnosed

People are surviving critical illnesses

Survival has a price

Medical Advances have changed our lives and are changing our world

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Leading Causes of Death in 1900

Pneumonia 12 % Tuberculosis 11 % Enteritis 8 %

Source: The Wall Street Journal, 08/27/01

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Average Life Expectancy

1900 - 47.3

2001 - 77.2

Source: National Center for Health Statistics 2002

People are living longer

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Lifestyles – Today We Diet Smoke (Some of Us) Work more Sleep less Rush

The Result: More Stress

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Church Bulletin

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Critical Illness Insurance

Your chances of surviving are better than ever...

2000 Heart and Stroke Statistical Update, American Heart Association

2000 Cancer Facts & Figures, American Cancer Society

0%

10%

20%

30%

40%

50%

60%

70%

80%

Survival Rates

Cancer Stroke HeartAttack

1950

2001

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Surviving has a price...

Source: 2002 Cancer Facts & Figures, American Cancer Society

35%

65%

Direct Cost

Indirect Cost

Critical Illness Insurance

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Survival Has a Price

Indirect Expenses

Loss of income for self and / or spouse Home modifications Experimental treatment Child care and domestic assistance Transportation and lodging for family members

and caregivers during treatment

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Fifty percent Of The Bankruptcies In The United States Are Due To A Serious Medical Condition

Survival Has a Price

Harvard Study 2005

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Simplified Critical Illness

Benefit Amounts$5,000 – $50,000

Issue Ages

18 - 59

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100% Benefits

Invasive CancerHeart AttackStrokeMajor Organ Transplant (when registered with United Network Organ Sharing/UNOS)

Alzheimer’s DiseaseParalysisRenal (kidney) FailureComaMajor Burns

As defined by the policy. May vary by state. Exclusions & limitations apply.

Covered Conditions and Definitions

Simplified Critical Illness

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Simplified Critical Illness

When you are diagnosed or require:• Cancer in-situ• Bypass Surgery

Pays 10% of the maximum benefit for Angioplasty

As defined by the policy. May vary by state. Exclusions & limitations apply.

Pays 25% of Maximum Benefit

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Simplified Critical Illness Return of Premium Death Benefit

If you die while your policy is in force, you can receive:

100% of the premiums paid minus any claims

or: The benefit amount (if from a covered

condition)

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Simplified Critical Illness Optional Benefits

In the event you survive and do not have a covered condition, you can receive 100 percent of the premiums you’ve paid at age 75

The Return of Premium rider provides increasing percentages beginning in the fifth year.

Return of Premium RiderReturn of Premium Rider

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Simplified Critical Illness Optional Benefits

Spouse Rider – can purchase any amount not to exceed primary insured

Children’s Rider – amounts of $5,000 or $10,000

Waiver of Premium – total disability, 6 month elimination period – retroactive benefits

Accidental Death Benefit – any amount up to the maximum benefit amount

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Underwriting – Simplified

Must Answer Questions “No” Must Be Within Build Guidelines

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Underwriting - Simplified

Build Guidelines

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Underwriting - Simplified

Tobacco Question-• Has the proposed insured(s) used any

tobacco or nicotine during the past 12 months?

• Tobacco Rates

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Underwriting - Simplified

Family HistoryHave any two or more of the Proposed Insured’s natural parents, brothers or sisters, either living or deceased, been diagnosed with the same condition(s) from the following list:

• Heart disease, stroke, diabetes, kidney disease or breast cancer prior to age 60?

• Colorectal cancer or Alzheimer’s or Senile Dementia prior to age 75?

• Any other same cancer in both relatives prior to age 55?

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MIB Telephone Inspection Telephone Inspection every twenty-fifth

App

Underwriting - Simplified

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Underwriting

Simplified Issue – Assurity Advantage Fully Underwritten – Don’t Promise a

Policy Until You Have One in Hand

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Markets

Major Medical Deductible Co – Pays Other Expenses Not Covered

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50 percent of bankruptcies are due to a serious illness

Harvard Study

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Are You Selling A Stool With One Leg?

He

alth

Insu

ran

ce

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Are You Selling A Stool With One Leg?

Ass

ocia

tion

Critical Illness

He

alth

Insu

ran

ce

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If you could Increase Your Income by 40 Percent without talking to one

additional prospect…

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Ask your prospects “If you have a major claim on your health insurance, what would be the reason?”

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Markets

Mortgage Market Only 3% of Mortgage foreclosures are due

to death 48% of mortgage foreclosures are due to a

Critical Illness

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Markets

Supplement to Disability Income Self Employed Supplement to Group DI Occupations Not Eligible for DI Teachers Government Employees Police and Fire

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What would you do if your employer asked you to take a 40 percent pay cut?

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After going through Chemo therapy treatments for 5 or 6 months, will you want to go back to work as soon as you can perform the material and substantial duties of your occupation?

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Personal Needs Analysis: If you were diagnosed with cancer or

suffered a heart attack or stroke, would you want all or part of your mortgage balance paid off? What amount would meet your needs?

OR

In the event of a critical illness, would you want your credit card or other lines of credit paid in full? What amount would meet your needs?

Or Six Months of Income

$

$

$

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How do you Sell Critical Illness? Forget the Statistics Doctors and good medicine created the problem People survive today!

50 years ago they would have died A Doctor created the Solution You need to help the client with options to attach

the dollars• ex. Mortgage, replacement of income, etc.• Personal Debt

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Presenting Critical Illness

Organized Presentation Who do you know? History of Critical Illness & Dr Barnard Story Video

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If you knew you would be diagnosed with cancer in the next 6 months, would you buy this?

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Critical Illness was only accepted by 3% of the market in England 10 years ago.

Now it is promoted by 99% of the same market.

Peter Dodd

Pegasus Life

London, England November 1999

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Do You Want to Know a Secret to Selling Critical Illness?

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Good Meeting